According to the Census Bureau figures, in 2004 approximately 15.7% of the U.S. population lacked any form of health care coverage, including either public or private. These 45,800,000 Americans are referred to as the uninsured. In 2002 the number was approximately 15.3% or 43,600,000 Americans. Of the population that currently has some form of health care coverage, it is estimated that approximately 16 million American adults are underinsured. This poses a significant risk to individuals and the health care system because an underinsured individual does not have adequate protection against severe health care expenses.
Due to the continued need for medical treatment, uninsured and underinsured individuals are a significant burden to the health care system. The growth in the number of uninsured and underinsured Americans will undoubtedly continue into the foreseeable future. Despite the size of this population, uninsured and underinsured individuals remain a costly entity to the health care system.
Those lacking health care coverage face the health care system as an unknown. Even more pressing is the tremendous burden and cost that is placed upon the health care system for providing health care to uninsured and underinsured individuals. Those who gain and lose health care coverage present a problem that can often be solved, as those who are insured are more likely to be able to maintain at least a minimal level of coverage. Maintaining coverage for even a small fraction of those who have transitioned from covered to uninsured can save the health care system a significant amount of money. Additionally, maximizing health care coverage for the underinsured has significant potential for relieving financial and social burdens upon the health care system.
These realities have consequences in terms of escalating costs, inefficiencies, and inequities. Public and private efforts have focused on specific problem areas, but these efforts have not specifically addressed the incidence of identifying available health care coverage and actually increasing health care coverage for uninsured individuals and families. Increasing health care coverage has the direct effect of decreasing the level of uninsured and underinsured people, which in turn has a significant impact upon the entire system. Furthermore existing systems do not provide a means for reducing the number of Americans who lose coverage by providing a means for maintaining and maximizing medical benefits coverage.